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Accounting standards are being implemented to improve the quality of financial information provided by companies. Accounting profit shows the amount of money left after deducting the explicit costs of doing business. The Accounting Rate of Return (ARR) formula is useful in determining a project’s annual percentage rate of return. Accounting ratios, an important subset of financial ratios, are a group of metrics used to measure a company’s performance and profitability based on its financial statements. An accounting standard is a set of methods and policies used to systematize accounting and other accounting functions across firms and over time. Accounting Theory provides guidance on effective accounting and financial reporting. Accounts payable (AP) represents amounts owed to sellers or suppliers for goods or services received that have not yet been paid for. The accounts payable turnover ratio is a measure of short-term liquidity used to quantify the speed at which a company pays its suppliers. Accounts receivable is the asset account on the balance sheet, which represents the money owed to the company in the short term. Receivables maturity is the process of distinguishing open receivables based on the length of time an invoice remains unpaid.